Oil surges after State Dept orders buyers to cut Iranian imports

Crude prices jumped on Tuesday after the U.S. State Department ordered companies to cut all of their imports coming from Iran to zero by November.

West Texas Intermediate futures for August delivery traded 2.7 percent higher at $69.90 per barrel, erasing earlier losses.

WTI intraday chart

Source: FactSet

“It’s an attempt to crush the regime,” said John Kilduff, founding partner at Again Capital. “I’m seeing the companies, left right and center drop out from buying it.”

“Total and Shell have announced they’re not buying it anymore, starting now,” Kilduff said.

This announcement is the latest effort in the Trump administration’s maximum pressure campaign against Iran. In May, President Donald Trump withdrew the U.S. from the Iran nuclear deal.